1.The following statements relate to accounting in general. Select all of the statements that are incorrect.

Select one or more:

a. Business events may affect a business but generally can not be recorded.

b. The size of a business may affect the type of accounting system they use.

c. Since owner's drawings involve the use of personal funds, they are not recorded in the business records.

d. The extended accounting equation demonstrates that income increases owner's equity, and expenses decrease owner's equity.

e. Double-entry accounting implies that business transactions have a dual effect on the accounting equation.

2.The following statements relate to planning and performance. Select all of the statements below that are false.

Select one or more:

a. Return on Investment (ROI) is a more superior assessment of divisional performance than Profit, as ROI takes into account the size of each division.

b. It is not considered risky to commence a new business without preparing a business plan.

c. Analysis of a business at an overarching level may be achieved with the Balanced Scorecard.

d. A manager in charge of a Cost Centre has broader responsibility than a manager in charge of a Profit Centre.

e. The preparation of a Business Plan does not guarantee that the business will succeed.